Almarai Company · TADAWUL:2280
Almarai — Q3 2022 Earnings Presentation
39 slides from Almarai's earnings presentation, October 2022
Slide 1: Almarai Company
Za CiclhoJl Almarai Almarai® Company
Slide 2: ne nel-oll
ne nel-oll Al saorel
Slide 3: Earnings Presentation Q3 2022 agenda
Earnings Presentation i Q3 2 i Market Dyaamies Business Performance Financiallpenonmance Q & A Session Appendix
Slide 4: Market Dynamics
Earnings Presentation Q3 2022 Market Dynamics
Slide 5: Product Innovation Pipeline - 2022
Product Innovation Pipeline - 2022 1 She
Slide 6: Almarai maintaining Market Share Leadership in KSA
..Whilst Almarai maintaining Market Share Leadership in KSA Laban Fresh Milk UHT Milk Food Juice Bakery Poultry (Fresh Chicken) Almarai Value Share % 64 65 20 37 42 53 34 64 66 21 34 47 55 31 Earnings Presentation - Q3 2022 63 65 20 34 42 55 32
Slide 7: Slide 7
Slide 8: 4,00 % 5,000 % % 3,50 % 4,500 70 000 % 4,000 60 000
4,00 0 60 000 % 5,000 90 000 % 80 000 % 3,50 0 50 000 % 4,500 70 000 % 4,000 60 000 % 3,00 0 40 000 % 50 000 % 3,500 2,50 0 30 000 % 65 0 40 000 % 34 0 30 00% 63 0 3,000 30 000 % 2,00 0 20 000 % 32 0 61 0 25 00% 20 000 % 2,500 1,50 0 10 000 % 59 0 10 000 % 30 0 20 00% 2,000 0% 57 0 1,00 0 0% 28 0 55
Slide 9: 5,0 4999.9 4,8 4,6 3999.9 4,4 4,2 2999.9 4,0 00 1999.9 3,8 00 3,6
5,0 00 4999.9 4,8 00 4,6 00 3999.9 4,4 00 4,2 00 2999.9 4,0 00 1999.9 3,8 00 3,6 00 999.9 3,4 00 3,2 00 -0.1
Slide 10: A very strong growth in all countries emerging from pandemic
..A very strong growth in all countries emerging from pandemic... SAR Million Q3 2022 Total Revenue is SAR 4,769 Million with a total growth of SAR 827 Million or 21% Jordan Bahrain Others 4%. 2% 5% Current Performance 4% Kuwait, Jordan 27% 41 5% KSA 22% 551 UAE 20% 66 Kuwait 15% 29 Egypt 15% 56 Oma
Slide 11: Driven by growth across all product categories
.. driven by growth across all product categories... SAR Million Q3 2022 Total Revenue is SAR 4,769 Million with a total growth of SAR 827 Million or 21% Other Sales wy \ Fruit Juice Fresh Dairy (— Current Performance 032022] crown] crowns | 5% Longlite '™ le ee Dairy Poultry 43% 234 1 1%, Bakery 32
Slide 12: And all channels with Food service still gaining momentum
..and all channels with Food service still gaining momentum SAR Million Q3 2022 Total Revenue is SAR 4,769 Million with a total growth of SAR 827 Million or 21% Other / > (— Export Food p . 8% Current Performance Food Service 33% 191 ji Service 16% Traditional Trade 21% 467 Modern Trade 13% 108 Othe
Slide 13: Earnings Presentation Business Performance
’ —_—_ oe Ww - _— CncloJl Almarai Earnings Pre esentaulgl
Slide 14: 1,2 4999.9 1,0 3999.9 2999.9 1999.9 999.9 200 0 -0.1
1,2 00 4999.9 1,0 00 3999.9 800 2999.9 600 1999.9 400 999.9 200 0 -0.1
Slide 15: Q3 2022 Financial Performance
Q3 2022 Financial Performance SAR Million Revenue - Return to Growth... “* Positive trend from first half continues in the third quarter, driven mainly by Poultry and Bakery Q3 2022 >>> 4,769 579 463 “> Volume growth rates have continued in the current quarter driven by food service expansion and ba
Slide 16: Q3 2022 Results by Segment
Q3 2022 Results by Segment Revenue by Segment Growth Dairy &Juice |3-139 as 15% Bakery 616 32% Poultry 776 | 43% =a Q3 2022 = Q3 2021 Net Profit Margin By Segment % of Revenue Growth we 2 ZV Dairy & Juice 12% ees 33 126 Bakery 110 18% 46% 75 | 16% Poultry | 12% 35 7% 173% = Q3 2022 1 Q3 2021 Earning
Slide 17: Strategic Management of Working Capital continues
Strategic Management of Working Capital continues SAR Million Working Capital - 2016 to TTM Q3 2022 9% 10% 1318 1,329 «2,689 =—s«2668)=—S3,238-—S 2,609 2016 2017 2018 2019 2020 2021 TT Q3 2022 mWorking Capital --Working Capital as a % of Revenue Earnings Presentation - Q3 2022 Almarai’ ;7
Slide 18: CAPEX in line with vision 2030 to boost food security
CAPExX in line with vision 2030 to boost food security and local content... SAR Million Capital Investment - 2016 to TTM Q3 2022 30% 4,389 2,844 1,923 1,650 969 1,364 2016 2017 2018 2019 2020 2021 TTM Q3 2022 mNet Cash Used in Investing Activities -eInvestment as a % of Revenue ** Capex cash spend c
Slide 19: Free Cash Flow
Free Cash Flow Free Cash Flow = SAR 2.0B SAR Billion OCF = SAR 4.2B 4.5 (0.3) (2.2) — mr 8) (1.0) 1.6PPE aul Total Facility 0.6 Bio Assets Total Facility; — “ r . . r es EndofQ32021 OperatingCash — Working Capital Capex Net Payment for Dividend Others End of Q3 2022 Liquidity Flow Funding Cost and L
Slide 20: Free Cash Flow is impacted in current quarter due to recent acquisitions
Free Cash Flow is impacted in current quarter due to recent acquisitions SAR Million Free Cash Flow 2016 to TTM Q3 2022 18% 18% 20% 9% 10% 11% as - = _ 1,304 ; 2,602 2,830 3,120 09) T T 1 2016 2017 2018 2019 2020 2021 TTM Q3 2022 mFree Cash Flow --Free Cash Flowas a % of Revenue Earnings Presentatio
Slide 21: Net Debt and EBITDA / EBIT Margins trend
Net Debt and EBITDA / EBIT Margins trend SAR Million Net Debt Trend EBITDA and EBIT Margins 3.0: 28% Ox 27x 2.6x 2.6x 26% —— - — 22% 50% 17% 16% 78% 66% 55% 58% 13% 12% 11,955 = _ = —_ _ _ = 1 2019 2020 2021 TTM Q3 2022 2019 2020 2021 TTM Q3 2022 mNet Debt (SARM) Net Debt / Equity Ratio Net Debt / E
Slide 22: Debt Maturity Profile highlights average debt tenure at 4.1 Years
Debt Maturity Profile highlights average debt tenure at 4.1 Years Debt Maturity by Age by Type a Se a ones) 0.0 f T Upto1Yr 1-2Yrs 2-3Yrs 3-4Yrs 45Yrs >5Yrs m Banks ™Govt/SemiGovtInst. ™ Islamic Bonds Earnings Presentation - Q3 2022 SAR Billion
Slide 23: Cash Dividend Since Listing
Cash Dividend Since Listing SAR Million 43% nro 42% 42% gn 36% 36% 35% 34% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 mCash Dividends -+Payout Ratio Earnings Presentation - Q3 2022 Almarai 23
Slide 24: Slide 24
Slide 25: Almarai
, ay Cicl Almarai
Slide 26: Earnings Presentation YTD Q3 2022 Financial Performance
Earnings Pr YTD Q3 2022 Performance
Slide 27: 4,00 % 3,50 % 15, 0% 14, 3,00 0 40 000 % 20 000
4,00 0 60 000 % 3,50 0 50 000 % 15, 000 25 000 0% 14, 000 3,00 0 40 000 % 20 000 0% 13, 000 12, 000 2,50 0 30 000 % 15 000 0% 11, 000 2,00 0 20 000 % 10, 000 10 000 0% 9,000 1,90 0 16 ,0 00% 1,20 0 25 000 % 1,50 0 10 000 % 8,000 50 000 % 14 ,0 00% 1,80 0 7,000 1,00 0 1,00 0 0% 20 000 % 12 ,0 00% 6,0
Slide 28: 14, 4999.9 13, 13, 3999.9 12, 12, 2999.9 11, 500 11, 000 1999.9 10,
14, 000 4999.9 13, 500 13, 000 3999.9 12, 500 12, 000 2999.9 11, 500 11, 000 1999.9 10, 500 10, 000 999.9 9,5 00 9,0 00 -0.1
Slide 29: A very strong growth in all countries emerging from pandemic
..A very strong growth in all countries emerging from pandemic... SAR Million YTD Q3 2022 Total Revenue is SAR 13,883 Million with a total growth of SAR 2,291 Million or 20% Bahrain Others > Jordan 2% Ya 4% 7 Oman 3% Kuwait 5% UAE 9% Egypt 8% KSA 65% ) 7 Current Performance Jordan 28% 111 UAE 24% 23
Slide 30: Driven by growth across all product categories
.. driven by growth across all product categories... SAR Million YTD Q3 2022 Total Revenue is SAR 13,883 Million with a total growth of SAR 2,291 Million or 20% Fruit Juice Other Sales Fresh oxy \ 9% 4% 34% Current Performance L Lif Dairy 10% Bakery 39% 495 Poultry 31% 512 LongLife Dairy 20% Fresh D
Slide 31: And all channels with Food service still gaining momentum
..and all channels with Food service still gaining momentum YTD Q3 2022 Total Revenue is SAR 13,883 Million with a total growth of SAR 2,291 Million or 20% SARMIION Food Other / > (— Service Export 14% — 6% Current Performance 03202 Food Service 32% Traditional Trade 20% Modern Trade 12% Other / Exp
Slide 32: Slide 32
Slide 33: YTD Q3 2022 Net Income Bridge
YTD Q3 2022 Net Income Bridge SAR Million Growth +10%/4+127 1,214 (1,181) (68) (12) 1,404 T TO Q3 2021 Volume & Mix Net Pricing Commodity Cost OperationalCost — Funding, Zakat, Q3 2022 Increase Taxes, Others acholl Earnings Presentation - Q3 2022 Almarai 33
Slide 34: YTD Q3 2022 Financial Performance
YTD Q3 2022 Financial Performance SAR Million Revenue - Return to Growth... Me & Positive trend from first half continues in the third quarter, driven mainly by Poultry and Bakery Volume growth rates have continued in the current quarter driven by food service expansion and back to school activities
Slide 35: YTD Q3 2022 Results by Segment
YTD Q3 2022 Results by Segment Revenue by Segment Dairy & Juice Bakery Poultry Others a 566 | 476 a YTD 2022 a YTD 2021 Net Profit Margin By Segment % to Revenue 0 Dairy & Juice 1009126 paver 280 15% akery 149 12% Poultry 236 | 11% 159 10% a YTD 2022 1 YTD 2021 Growth 3% 73% A8% Earnings Presentatio
Slide 36: YTD Q3 2022 Profit & Loss Statement
YTD Q3 2022 Profit & Loss Statement SAR Million 3rd Quarter YTD 3rd Quarter 2022 2021 Revenue 4769 100.0% 3,942 100.0% 21.0% 13,883 100.0% 11,592 100.0% Cost of sales (3,280) (68.8%) (2,666) (67.6%) (23.0%) (9,593) (69.1%) (7,726) (66.6%) Gross Profit 1,489 31.2% 1,276 32.4% 16.7% 4290 30.9% 3,867 3
Slide 37: YTD Q3 2022 Results by Segment
YTD Q3 2022 Results by Segment Al i Dairy & Juice} Bakery Poultry Others ite Consolidated YTD Q3 2022 Revenue - YTD Q3 2022 9,391 1,755 2,172 566 13,883 Profit Attributable to Shareholders - YTD Q3 2022 1,039 258 236 (129) 1,404 Percent to Revenue of Profit Attributable to Shareholders 11.1% 14.7% 1
Slide 38: Key Share Data
Key Share Data Key Statistics for Almarai (30 September 2022) Year to date total shareholder's return since listing Share Price (SAR) 53.20 Current P/E Ratio (ttm) 31.44 Earnings Per Share (SAR) (ttm) 1.69 12% Market Cap (SAR Million) 53,200 HH Prince Sultan Bin Shares Outstanding (Million) 1,000 Mo
Slide 39: Thank you
wz Almarai Thank you A vers and A Top 50 SaudiArabia 1s'Saudi Brand Corporate Governance with 1B views Excellence Awar« Best Employersin the Middle East VouiTube First Choice for BASES Top Awardsfor Best Consumers in KSA KSA’sTop 10 breakthrough Marketing Campaigns Best Employers ye & UAE innovation